Sunday, May 1, 2011

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Yes, There's An Apple "Castle" In The Cloud Top
Yesterday, French site Consomac.fr did some digging into the latest developer preview build of OS X Lion and found something interesting. Buried in the code are references to a service named called “Castle”. Given the context of one of the mentions — “upgrade from MobileMe to Castle” — this led most to assume that the name referred to Apple’s upcoming cloud service overhaul. We can now confirm that to be the case. As TUAW guessed , Castle is in fact the internal nickname of Apple’s new service which many are now calling “iCloud” in the press (thanks to Apple’s acquisition of that domain recently ), we hear. But here are a couple other tidbits about the service from a naming perspective: the original nickname was “Newcastle”, but that got shortened to “Castle” at some point recently. And the actual shipping name of the product may still be up in the air. At the very least, it is still being called “Castle” internally for the moment. And yes, as we first reported back in March , this service will be unveiled at Apple’s WWDC event in June. On Friday, AppleInsider reported that Apple had begun testing iCloud internally with new versions of iOS and OS X. From what we’re hearing, that is true, but again, the name still being used is the Castle codename — hence, the references in the code. Still, given Apple’s quick move to scoop up iCloud and the branding consistency, we wouldn’t be surprised if iCloud is definitely the front-runner for Castle’s eventual name at this point. With WWDC fast approaching, Apple is going to have to make the call soon to get to work on the branding. CrunchBase Information Apple Information provided by CrunchBase
 
The Scandal Of Toothless Social Media Representatives Ends… Now Top
Last weekend, our own Erick Schonfeld wrote an impressive in-flight diatribe against American Airlines; specifically their ineffectual social media representatives whom he described as little more than “a toothless marketing arm” for the company. Of course, the usual dick of troll commenters (‘a dick’ is the collective noun for troll commenters, look it up) complained that personal rants have no place on TechCrunch – despite the fact that a) TechCrunch is built on a proud tradition of personal rants b) Erick is the co-editor of the site and so can write whatever he damn well pleases. In fact Erick’s ‘rant’ was long overdue. American Airlines’ social media department does suck when it comes to providing actual customer service. But here’s the thing: so does everybody else’s. Last night I stayed at the Luxor hotel in Las Vegas and had cause to bitch on Twitter about the wifi. Sure enough I promptly received the standard “we’re sorry, we’ll look into it…” response from the hotel’s social media representative. And of course that was the last I heard from them (until late this morning when I complained again, and they offered to contact me privately – ten minutes before I was due to check out). For MGM, which owns the Luxor, the important thing was they’d intercepted my complaint and encouraged me to discuss it with them privately; effectively “shhhhh”-ing me away from complaining further in a public forum. Across America, and the world, thousands upon thousands of people are current employed as “social media representatives” or “online brand ambassadors” or whatever title we’re giving to this army of 19-year-old, disaffected, invent-your-own-job-title millennials this week. In almost every case, those responsible for the Twitter accounts of giant companies have absolutely no access to customer accounts, nor are they in any way able to make the decisions required to resolve complaints. Instead their job is simply to identify angry customers, publicly apologize and then promise to resolve the matter by DM. Nothing more. This despite the fact that for a growing number of customers, these @companyname or @companynamecares Twitter accounts represent the primary public face of multi-billion dollar brands. Erick and I are fortunate to have TechCrunch as a platform to draw attention to this scandalous waste of company resources and mass-deception of customers. The vast majority of people aren’t so lucky. Well enough’s enough: it’s time we bring this nonsense out in to the open. I want to hear your real world examples of how companies have dealt with your Twitter complaints. Which ones lead to actual remedial action, and which were simply swept under the carpet with the empty promise of a private response? In the coming weeks I’ll write a couple of follow up posts – one to praise the companies who actually practice what their social media representatives are paid to preach, and another name and shame the brands who – like American Airlines and the Luxor (MGM) – promise the earth but deliver nothing. I have a feeling I know which will be the longer post. Tell me your stories here .
 
Flash in the Pan Top
The news from NBC/Universal/Comcast is that the cable giant has finally made deals with both ABC and Fox to carry selected shows on their on-demand service. This is big news for the iPad set, because all four major broadcast networks are now available in a single service, on the iPad, without Flash. Across town we hear talk of hardware acceleration linking up with Android to make Flash finally usable on every other device. This would be a good thing for Flash fans, who can make the argument that more devices will work with Flash than won’t. But in the new world of network broadcasting, the show’s over for Flash. Nobody cares what makes the picture dance on the screen, just that it does. Instead, we care whether it streams or it doesn’t. Live streaming may seem to be about Ustream v. YouTube, about watching the Wedding or GaGa or whatever trending stream is hitting your push notification buffer. But it’s also about your own personal broadcast stream, formerly known as the telephone. Video calls are finally here, and the broadcasters who dither too long about iPad streaming will be in the same kind of trouble Microsoft is in with Windows. The same way that we don’t care about Flash, we don’t care about the distinction between streaming phone calls and on-demand shows. One is about some idiot wasting your time, and the other… Same thing. The same dynamics that Comcast has finally ratified are moving into the phone call. Cable subs are up for those who support iPad access, down for those who don’t. Time Warner and Cablevision softened up the studios, and Comcast came in and closed. Similarly, FaceTime softened up the carriers by introducing a service that obliterated the need for international plans. Those of us who switched to Verizon are out of luck until iPhone 5 anyway for a global phone, so the calculation on a trip to Europe is to get a throwaway phone for the trip from the airport to the hotel and WiFi. And before you say that FaceTime doesn’t work over 3G, Skype video does. The next time you Update All on your iPhone, you’ll see what I mean. On this week’s Gillmor Gang, Danny Sullivan suggests it’s an extra download and besides people don’t want to have to put on makeup to answer the phone (I’m paraphrasing, or just trying to embarrass Danny gratuitously, or maybe myself for carrying blush at all times.) Twitter is an extra download for now, but the second they jump on video calls using their directory this will be a feature not a hassle. When the smaller market of international travelers becomes enamored of video calls, we see another Netflix-style hockey stick. WiFi becomes a differentiator for choice of hotel and event venues, for coffee shops and restaurants, for sporting events and rock concerts. All of a sudden your phone and tablet becomes your portal to personal and professional incoming pings, a push notification router filtered by your business and location rules. How long did it take for Comcast to make this deal? Time Warner released its iPad software less than two months ago, were sued by Comedy Central a week later, and were fast followed by Cablevision as though to say, no we really mean this, 10 days after that. It became clear in a New York minute that people wanted more stuff for their new iPad 2′s, and oh wait, iPad 2′s have a camera. Then ABC, the last of the original big three, capitulates to Comcast, and oh, wait, that’s Steve Jobs’ network. Why would Jobs want to play the Disney card now, except for the fact that iPad 2 sales are going to skyrocket once the pipeline recovers from not being able to make them fast enough. You only have to experience a Skype video call once to want FaceTime to work over 3G, and Skype is softening up the carriers just as they move off flat rate to a profit center for streaming. You may not have been paying attention to the 5 gig limit before now, but the Comcast on-demand steaming at home and Skype push notifications on the go will stoke demand, as it were. Apple already is making the case for a Comcast moment with the carriers by rudely interrupting Skype calls when a carrier call comes in. The Skype call is put on hold (at least on Verizon) and you have to cancel the push notification and decline the incoming call before returning to your video call. Perhaps Jobs is looking for some competition from AT&T to differentiate from Verizon as they have done with simultaneous call and data. Perhaps the lure of selling a higher priced video cap will close the deal. Android has a real problem here that Google is attempting to fix by offering on-demand video over YouTube. Android’s video service is just now making its way into some builds, but the combination of pro and amateur streaming video offered by Apple will be hard to overcome. Not that it needs to be, because compatibility between the two major platforms will come at the cost of paving over Flash permanently.
 
OMG/JK: Insert Pun About Storms In The Cloud Here Top
We’re back for a new episode of OMG/JK (in HD!). This week the news has been all about private data — Google and Apple have been accused of tracking your every move (they aren’t), and Sony has revealed that 77 million user accounts were compromised (this, unfortunately, is true). Tune in to find out where things stand now, and where to get the best deal on your tinfoil hat. Here are some recent articles that are relevant to this week’s episode. Amazon EC2 goes down, taking with it Reddit, Foursquare and Quora Apple Responds To Location Tracking Kerfuffle, Says It's Innocent, Blames Bugs Google Responds To Smartphone Location Tracking Uproar, Says Android Is Opt-In Lost In The iPhone Location FUD Disaster: Playstation Network User Data Compromised, Names, Addresses, Maybe Credit Cards Subscribe to us on iTunes!
 
Intuit's GoPayment Cuts Transaction Fees, Pricing Now More In Line With Square Top
Inuit’s GoPayment reader, which competes directly with Square, is about to become more attractive to small businesses. The company has made the decision dropped the transaction fee ($0.15 per transaction) for both new and existing customers for Visa, MasterCard and Discover cards, both swiped and key-entered as well as qualified and non-qualified transactions. The move will go into effect on Monday. Launched two years ago, GoPayment offers a complimentary app and credit card reader to allow small businesses to conduct charges via their smartphones. GoPayment is available for iOS, Android and Blackberry phones. So now, businesses using the mobile payments reader will only pay a flat 2.7 percent fee of a transaction for any swiped cards. Intuit will charge 3.7 percent for both key entered and non-qualified transactions. This is surely a competitive move against Square, which also dropped its transaction fee (which was $0.15) recently in favor of a flat 2.75 percent fee for all transactions. One important fact to note—Intuit will still charge the transaction fee for transactions using American Express but this is something the company is working on negotiating. Square does not charge a fees for transactions on Visa, MasterCard, Discover and American Express. For higher credit card processing volume (recommended for more than a $1,000 per month), Intuit is continuing to charge a $12.95 monthly fee but has dropped the set transaction charge of $0.30. The per transaction percentage remains at 1.7 percent for cards swiped; and 2.7 percent for key entered. Mobile payments is a competitive space and it’s hard not to notice some of the attention Square has been getting from both Visa and Apple . Because of this, companies like Intuit have to up the ante to remain competitive and attract businesses. For example, Intuit recently extended the offer of a free version of its GoPayment reader indefinitely. Square’s readers have been free for some time now. Chris Hylen, VP and general manager of Intuit Payment Solutions said this explaining this change in pricing: We started simplifying GoPayment pricing back in January when we eliminated the monthly fee. Now we're removing transaction fees. As we continue to evaluate the market and talk with customers, we believe that making our pricing even more affordable is the best way to give more people an easy way to process credit cards on their mobile devices. While Square is growing fast, as more and more businesses are looking for innovative, inexpensive and painless ways to accept credit cards, Intuit’s reader does offer a compelling product. The company reports that it has seen a nearly 700% increase in the number of people signing up for GoPayment each week compared to the beginning of the year (driven in large part its free swiper offering). Intuit declined to reveal exactly how many users are signing up per day vs. a year ago. And GoPayment users are  processing in excess of $15 million a week using GoPayment and related services. These services also include payments from the Web and through QuickBooks using a GoPayment merchant account, so it’s unclear how much of that $15 million is coming through the readers themselves. Intuit says GoPayment users have processed more than $3 million in a single day over the past month as well. For basis of comparison, Square just revealed that it is processing $2 million in transactions per day and $66 million for the first quarter, but COO Keith Rabois says forecasts that this number will triple in Q2. The other competitor in the space, VeriFone, has yet to eliminate the set transaction fees ($0.17) associated with its payment product. But with pressure from both Square and Intuit, that may change soon. CrunchBase Information Intuit Information provided by CrunchBase
 
Internet Entrepreneurs Are Like Professional Athletes, They Peak Around 25 Top
“Consumer Internet entrepreneurs are like pro basketball players,” a venture capitalist told me recently while discussing the prospects for a thirty-something founder, “They peak at 25, by 30 they’re usually done.” Why? Because young entrepreneurs are more creative and imaginative, and are willing put 100% of their lives into their startups, he said. “It’s not a guess, this is a data driven observation,” says the VC. He had a number of caveats. First, this only applies to consumer Internet entrepreneurs. Enterprise and hardware startups tend to do better with older founders, where experience (and direct sales experience) matter a lot. And there are plenty of founders that, like Michael Jordan, can peak way beyond 25 (and the peak basketball age is really probably at least a 27). “Those tend to be the repeat success founders,” he said, “the rules don’t apply to them.” Peak age of startup founders is an endless debate. Vivek Wadhwa says his data shows that older entrepreneurs are more successful , for example. He argues that ageism is more about exploiting young people more than getting value for money. Other data suggests the opposite. Like this – last year Y Combinator said the average age of their founders is 26 . Of course they could have selection bias, but Y Combinator is one of the most data driven investors I’ve heard of. if older people did better, they’d be funding more of them. At Disrupt in New York in May we’ve got a very cool interview planned. SV Angel says they’ve analyzed deep demographic data for their 500+ investments over the last twelve years or so. It takes years to know how successful a startup will eventually be, so this is particularly valuable data. Will they agree that Internet startup founders should be looking to make a name for themselves before they hit 30, or give up? We’ll know in a few short weeks.
 

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